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NEED HELP! ACC 2020 question Your answer is partially correct. Try again. Caine Bottling Corporation is considering the purchase of a new bottling machine. The

NEED HELP! ACC 2020 question

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Your answer is partially correct. Try again. Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $206,278 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $39,000. Management also believes that the new bottling machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime. Assume a discount rate of 11%. Calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number eg. 45 or parantheses eg (45). Round present value answer to 0 decimal places, e.g. 125.) How much would the reduction in downtime have to be worth in order for the project to be acceptable? (Round answer to 0 decimal places, e.g. 125.)

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